IDEAS home Printed from https://ideas.repec.org/a/bla/rdevec/v26y2022i1p133-155.html

Urban cash transfers and poverty in Ghana

Author

Listed:
  • Jose Cuesta
  • Michael Danquah

Abstract

The increasing attention to social protection in urban settings is not being paired with increasing evidence. This paper offers a single ex‐ante evaluation methodology that simulates the monetary poverty effects of changing eligibility conditions, unitary benefits, and the composition of cash transfer programs aimed at expanding coverage in urban areas. We apply this methodology to Ghana, a growing, middle‐income country committed to reducing poverty but with a weak social protection system with little urban presence. We show that while a flagship cash transfer program, the Livelihood Empowerment Against Poverty program (LEAP), transfers less than GHS 34 million (US$7.6 million) a year, ending extreme poverty in Ghana would require spending around GHS 1,800 million ($400 million). Efforts to tackle urban poverty through transfers will prove unsuccessful without enough fiscal resources.

Suggested Citation

  • Jose Cuesta & Michael Danquah, 2022. "Urban cash transfers and poverty in Ghana," Review of Development Economics, Wiley Blackwell, vol. 26(1), pages 133-155, February.
    • Handle: RePEc:bla:rdevec:v:26:y:2022:i:1:p:133-155
    DOI: 10.1111/rode.12817
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/rode.12817
    Download Restriction: no
    File URL: https://libkey.io/10.1111/rode.12817?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Davis, Benjamin & Handa, Sudhanshu & Hypher, Nicola & Winder Rossi, Natalia & Winters, Paul & Yablon (ed.), 2016. "From Evidence to Action: The Story of Cash Transfers and Impact Evaluation in Sub Saharan Africa," OUP Catalogue, Oxford University Press, number 9780198769446.
    2. Browning,Martin & Chiappori,Pierre-André & Weiss,Yoram, 2014. "Economics of the Family," Cambridge Books, Cambridge University Press, number 9780521795395.
    3. François Bourguignon & Amedeo Spadaro, 2006. "Microsimulation as a tool for evaluating redistribution policies," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 4(1), pages 77-106, April.
    4. repec:wbk:wbpubs:18886 is not listed on IDEAS
    5. repec:wbk:wbpubs:29115 is not listed on IDEAS
    6. Jose Cuesta & Mario Negre & Ana Revenga & Maika Schmidt, 2018. "Tackling Income Inequality: What Works and Why?," Journal of Income Distribution, Ad libros publications inc., vol. 26(1), pages 1-48, March.
    7. Leite, Phillippe & Narayan, Ambar & Skoufias, Emmanuel, 2011. "How do ex ante simulations compare with ex post evaluations ? evidence from the impact of conditional cash transfer programs," Policy Research Working Paper Series 5705, The World Bank.
    8. repec:wbk:wbrwps:98253 is not listed on IDEAS
    9. repec:mpr:mprres:8113 is not listed on IDEAS
    10. van de Walle, Dominique, 1998. "Assessing the welfare impacts of public spending," World Development, Elsevier, vol. 26(3), pages 365-379, March.
    11. Sudhanshu Handa & Silvio Daidone & Amber Peterman & Benjamin Davis & Audrey Pereira & Tia Palermo & Jennifer Yablonski, 2018. "Myth-Busting? Confronting Six Common Perceptions about Unconditional Cash Transfers as a Poverty Reduction Strategy in Africa," The World Bank Research Observer, World Bank, vol. 33(2), pages 259-298.
    12. repec:wbk:wbpubs:21369 is not listed on IDEAS
    13. Stephen D. Younger & Eric Osei-Assibey & Felix Oppong, 2017. "Fiscal Incidence in Ghana," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 47-66, November.
    14. Aran,Meltem A. & Munoz Boudet,Ana Maria & Aktakke,Nazli, 2016. "Building an ex ante simulation model for estimating the capacity impact, benefit incidence, and cost effectiveness of child care subsidies : an application using provider-level data from Turkey," Policy Research Working Paper Series 7917, The World Bank.
    15. Caitlin Brown & Martin Ravallion & Dominique van de Walle, 2019. "Most of Africa's Nutritionally Deprived Women and Children are Not Found in Poor Households," The Review of Economics and Statistics, MIT Press, vol. 101(4), pages 631-644, October.
    16. François Bourguignon & Francisco H. G. Ferreira & Phillippe G. Leite, 2003. "Conditional Cash Transfers, Schooling and Child Labor : Micro-Simulating Bolsa Escola," DELTA Working Papers 2003-07, DELTA (Ecole normale supérieure).
    17. repec:wbk:wbpubs:2597 is not listed on IDEAS
    18. José Cuesta & Juan Ponce, 2007. "Ex‐Ante Simulations Of Direct And Indirect Effects Of Welfare Reforms," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(4), pages 645-672, December.
    19. Orazio P. Attanasio & Camila Fernández & Emla O. A. Fitzsimons & Sally M. Grantham-McGregor & Costas Meghir & Marta Rubio-Codina, "undated". "Using the Infrastructure of a Conditional Cash Transfer Program to Deliver a Scalable Integrated Early Child Development Program in Colombia: Cluster Randomized Controlled Trial," Mathematica Policy Research Reports 62cf429ea5b74678a945aa87b, Mathematica Policy Research.
    20. Samuel Freije & Rosangela Bando & Fernanda Arce, 2006. "Conditional Transfers, Labor Supply, and Poverty: Microsimulating Oportunidades," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2006), pages 73-124.
    21. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762.
    22. Jenny C. Aker & Rachid Boumnijel & Amanda McClelland & Niall Tierney, 2016. "Payment Mechanisms and Antipoverty Programs: Evidence from a Mobile Money Cash Transfer Experiment in Niger," Economic Development and Cultural Change, University of Chicago Press, vol. 65(1), pages 1-37.
    23. Gentilini,Ugo, 2015. "Entering the city : emerging evidence and practices with safety nets in urban areas," The Social Policy and Labor Discussion Paper Series 98253, The World Bank.
    24. FranÁois Bourguignon & Francisco H. G. Ferreira & Phillippe G. Leite, 2003. "Conditional Cash Transfers, Schooling, and Child Labor: Micro-Simulating Brazil's Bolsa Escola Program," The World Bank Economic Review, World Bank, vol. 17(2), pages 229-254, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chei Bukari & Isaac Koomson & Samuel Kobina Annim, 2024. "Financial inclusion, vulnerability coping strategies and multidimensional poverty: Does conceptualisation of financial inclusion matter?," Review of Development Economics, Wiley Blackwell, vol. 28(2), pages 462-498, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jose Cuesta & Jon Jellema & Lucia Ferrone, 2022. "Correction to: Fiscal Policy, Multidimensional Poverty, and Equity in Uganda: A Child-Lens Analysis," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(1), pages 571-572, February.
    2. Jose Cuesta & Jon Jellema & Lucia Ferrone, 0. "Fiscal Policy, Multidimensional Poverty, and Equity in Uganda: A Child-Lens Analysis," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 0, pages 1-32.
    3. Bourguignon, François & Bussolo, Maurizio, 2013. "Income Distribution in Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1383-1437, Elsevier.
    4. Olivier Bargain, 2024. "Income sources, intrahousehold allocation and individual poverty," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 70(2), pages 291-319, June.
    5. Ulugbek Aminjonov & Maira Colacce & Olivier Bargain & Luca Tiberti, 2024. "Culture, Intrahousehold Distribution, and Individual Poverty," Economic Development and Cultural Change, University of Chicago Press, vol. 73(1), pages 127-165.
    6. Francisco Gonzalez & Irving Rosales, 2016. "The case against child labor bans," Working Papers 1601, University of Waterloo, Department of Economics, revised Jan 2016.
    7. Miguel Nino-Zarazua, 2011. "Mexico’s Progresa-Oportunidades and the emergence of Social Assistance in Latin America," Global Development Institute Working Paper Series 14211, GDI, The University of Manchester.
    8. Rolf Aaberge & Ugo Colombino, 2014. "Labour Supply Models," Contributions to Economic Analysis, in: Handbook of Microsimulation Modelling, volume 127, pages 167-221, Emerald Group Publishing Limited.
    9. Olivier Bargain & Guy Lacroix & Luca Tiberti, 2021. "Intrahousehold Resource Allocation and Individual Poverty: Assessing Collective Model Predictions against Direct Evidence on Sharing," Working Papers hal-03432676, HAL.
    10. Gutierrez, Federico H., 2018. "A Sharing Model of the Household: Explaining the Deaton-Paxson Paradox and Computing Household Indifference Scales," GLO Discussion Paper Series 166, Global Labor Organization (GLO).
    11. M. Fort & N. Schneeweis & R. Winter-Ebmer, 2011. "More Schooling, More Children: Compulsory Schooling Reforms and Fertility in Europe," Working Papers wp787, Dipartimento Scienze Economiche, Universita' di Bologna.
    12. Sudhanshu Handa & Silvio Daidone & Amber Peterman & Benjamin Davis & Audrey Pereira & Tia Palermo & Jennifer Yablonski, 2018. "Myth-Busting? Confronting Six Common Perceptions about Unconditional Cash Transfers as a Poverty Reduction Strategy in Africa," The World Bank Research Observer, World Bank, vol. 33(2), pages 259-298.
    13. Behrman, Jere R., 2009. "Analyzing the Distributional Impact of Reforms, Volume Two: A Practitioner's Guide to Pension, Health, Labor Market, Public Sector Downsizing, Taxation, Decentralization, and Macroeconomic Modeling. Aline Coudouel and Stefano Paternostro, eds. World ," Journal of Pension Economics and Finance, Cambridge University Press, vol. 8(3), pages 396-397, July.
    14. Alem, Yonas & Schürz, Simon, 2025. "Parental Decision-Making and Educational Investments: The Intergenerational Cost of Noncooperation," EfD Discussion Paper 25-8, Environment for Development, University of Gothenburg.
    15. Rolf Aaberge & Ugo Colombino, 2018. "Structural Labour Supply Models and Microsimulation," International Journal of Microsimulation, International Microsimulation Association, vol. 11(1), pages 162-197.
    16. repec:osf:socarx:ydr54_v1 is not listed on IDEAS
    17. Dieter Saelens, 2022. "Unitary or collective households? A nonparametric rationality and separability test using detailed data on consumption expenditures and time use," Empirical Economics, Springer, vol. 62(2), pages 637-677, February.
    18. Ana Maria Buller & Amber Peterman & Meghna Ranganathan & Alexandra Bleile & Melissa Hidrobo & Lori Heise, 2018. "A Mixed-Method Review of Cash Transfers and Intimate Partner Violence in Low- and Middle-Income Countries," The World Bank Research Observer, World Bank, vol. 33(2), pages 218-258.
    19. Ervin Prifti & Silvio Daidone & Greta Campora & Noemi Pace, 2021. "Government Transfers and Time Allocation Decisions: The Case of Child Labour in Ethiopia," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(1), pages 16-40, January.
    20. Kitaura, Koji & Miyazawa, Kazutoshi, 2021. "Inequality and conditionality in cash transfers: Demographic transition and economic development," Economic Modelling, Elsevier, vol. 94(C), pages 276-287.
    21. Ryan, Mary & O’Donoghue, Cathal & Upton, Vincent, 2014. "Land Use Change From Agriculture To Forestry: A Structural Model Of The Income And Leisure Choices Of Farmers," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182753, European Association of Agricultural Economists.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:26:y:2022:i:1:p:133-155. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.